논문

The advantage of using municipal borrowing to finance infrastructure is
increasing to policy makers in Korea. Some of policy makers have been making
efforts to accelerate the development of municipal borrowing markets. These
efforts use the strenghts of the credit rating system in U.S. municipal borrowing
markets. The purpose of this paper is to review municipal borrowing markets in
Korea and to investigate the characteristics of U.S. credit rating system. In
conclusion, it suggests that the usefulness of credit rating system in Korean
municipal borrowing markets is not high. Korean municipal borrowing markets are
not competitiveness, credit rating's signal effect, and institutional system of
prevention against moral hazard.